CLEVELAND — Home interest rates continue to sit at about 7% and it is costing homebuyers more than we've seen in the last 20 years.
But local realtors say that shouldn't deter you from finding your dream home.
Despite the panic within the housing market we've seen over the past few years, Deborah Bonner, real estate agent and president of the Greater Cleveland Realtors Association says, it's always a good time to buy, especially now as the market starts to correct itself.
“There are more houses now. We aren't back to where we were back in 2020, like early 2020 or 2019. We’re not back there yet,” she said. “[There is] like a 2-6% of an increase as far as inventory.”
Even with interest rates doubling this year, Candice Eberhardt, broker-owner of Eberhardt Realty and Management and president of Akron’s realtor association, says there's no need to worry.
“When the pandemic hit, the interest rates dropped to two or three percent, and they'd never been that low historically. So, if you buy a home, you'll still have the same benefits that come along with homeownership,” she said. “I've had a lot of people that have decided to take a step back due to the increased interest rates. But once we have the conversation, a lot of them are more comfortable than they were prior to.”
However, affordable housing may still be harder to find. Forbes reports homebuilders are now slowing new construction due to low demand. It's why back in October, Goldman Sachs predicted a 5-10% drop in home values between now and March 2024.
Here in Ohio, home sales dropped 22 percent in October compared to numbers recorded that same month last year. Yet, sale prices increased.
“We were low for so long that people became comfortable and with the recent increases, I think we're just on target, you know, to where a lot of other places are in. It's just time for the price to be raised,” Eberhardt said.
Still, there's a way to get your dream home or into a new one. Officials say while a housing market crash is likely, they do not expect it to happen in 2023.
“I don't know where the market's going to be in six months. I don't know where it's going to be next year, but I can tell you what's going on now and there are options if you buy now to get a lower interest rate,” Eberhardt said. “You just have to be creative with your methods as far as negotiating the deals are concerned.”